Bridgepoint and Summit Partners agreed to buy Calypso Technology, Inc., which provides capital markets software. The transaction is subject to standard competition authority clearances. Financing is being provided by Goldman Sachs, UniCredit, Crédit Agricole, Mizuho and Bank of Ireland.
Calypso Technology, Inc. (‘Calypso’), a leading provider of capital markets software, announced today that it is to be acquired by European private equity fund Bridgepoint and global growth equity investor Summit Partners. The acquisition will support Calypso’s next phase of growth and continued innovation leadership in capital markets technology.
Established in 1997, Calypso offers an integrated suite of trading and risk management solutions used by over 34,000 market professionals in more than 60 countries. Calypso’s cross-asset, front-to-back architecture was designed from the outset to enable systems consolidation, enterprise risk management and rapid access to new markets for its customers. Clients today range from global and local banks to asset managers, clearing houses, central banks, custodians, insurance companies and treasuries of large corporations. Calypso has over 700 employees and operates a network of 22 offices in 19 countries. Over 50% of the company’s employees are engaged in R&D across 5 global development centers.
Pascal Xatart, President of Calypso, said, “Today’s announcement sees the arrival of a new investor base with the financial strength and shared vision to support our growth ambitions. Capital markets require both resilient and innovative technology and Calypso’s solutions support our clients’ most critical operations. We are recognized as a market leader with a reputation for ease of use, innovation and customer satisfaction. Our goal now is to become the landmark financial software provider serving institutions with complex treasury and capital markets needs.”
Xavier Robert, partner responsible for Bridgepoint’s investments in the media & technology sector, said, “Constant pressure on financial institutions to improve risk management and return on capital, while at the same time managing margins and increased regulation, has created the need for integrated solutions able to reduce operating costs, improve capital allocation and comply with regulations. Calypso has been at the forefront of addressing this growing demand with a single, integrated platform that is acknowledged as both reliable and scalable across asset classes. We will partner with management as they build on the company’s success to date, consolidating its market leadership by continuing to better serve its clients and realizing its true growth potential.”
Scott Collins, managing director at Summit Partners, added, “We are pleased to partner with Calypso management and Bridgepoint to invest in this outstanding treasury and capital markets software business. At Summit, we have deep experience investing in financial technology, and we believe that the core strengths of Calypso’s unified technology architecture, the company’s focus on innovation and a strong commitment to client service will continue to drive growth in the years to come.”
The transaction is subject to standard competition authority clearances. Debt for the transaction was provided by Goldman Sachs, UniCredit, Crédit Agricole, Mizuho and Bank of Ireland.
Advisors involved included:
– for Calypso: Wilson Sonsini Goodrich & Rosati
– for Bridgepoint and Summit Partners: Credit Suisse, Latham & Watkins, Kirkland & Ellis, Bain & Company, EY
Calypso is the leading provider of front-to-back technology solutions for the financial markets. With 19 years of experience delivering cross-asset solutions for trading, processing, risk management and accounting, Calypso brings simplicity to the most complex business and technology issues. Constant pressures for better allocation of capital and improved risk management, matched by an ever changing regulatory landscape in the financial markets demand technology solutions that are reliable, adaptable and scalable. In response Calypso provides customers with a single platform designed from the outset to enable consolidation innovation and growth. Calypso is a Leader in the Gartner Magic Quadrant for Trading Platforms, and the #1 selling Treasury and Capital Markets Solution for the seventh year running in the 2016 IBS Sales League Table.
Bridgepoint is a European private equity firm. With over €20 billion of capital raised to date, it typically focuses on acquiring well managed companies in attractive sectors with the potential to grow organically or through acquisition. It is currently investing a €4 billion fund in growth-oriented middle-market businesses in Europe.
Bridgepoint currently comprises two businesses: 1. Bridgepoint Europe which concentrates on middle market companies across Europe typically valued between €200 million and €1 billion. It has offices throughout Europe in Frankfurt, Istanbul, London, Luxembourg, Madrid, Paris, Stockholm and a portfolio development office in Shanghai, and 2. Bridgepoint Development Capital, a separate ‘lower mid-cap’ or smaller buyout and growth capital business which focuses on the acquisition of companies in the UK, France and the Nordic region, typically valued between €50 million and €150 million. www.bridgepoint.eu
In January 2015, Bridgepoint acquired eFront, the business software solutions provider which specializes in enterprise risk management and alternative investments, in a transaction totaling approximately €300 million.
About Summit Partners
Founded in 1984, Summit Partners is a global growth equity firm that is currently investing more than $7.2 billion into equity and fixed income opportunities. Summit has invested in more than 430 companies in technology, healthcare, life sciences and other growth sectors. These companies have completed more than 135 public offerings, and more than 160 have been acquired through strategic mergers and sales. Notable financial technology companies financed by Summit Partners include 360T, FleetCor, Flow Traders, Multifonds, Ogone and optionsXpress. Summit maintains offices in North America and Europe and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners LLP, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners LLP is a limited liability partnership registered in England and Wales with registered number OC388179 and its registered office is at 20–22 Bedford Row, London, WC1R 4JS, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for p2rospective portfolio companies.